At December 31, 2020, Green company had three existing patents shown below: Date Acquired February 14, 2016 January 3, 2019 July 1, 2019 Useful life 8 years 10 years 5 years Cost Patent A Patent B Patent C P 150,000 210,250 72,000 During 2021, the company had the following transactions and assessments: • Due to the emerging competition relating to the product being manufactured in Patent A, it is expected that the right will be useful only in 2021 and 2022. Patent B is believe to be uniquely useful as long as the company retains the right to use it. On June 1, 2021, the company unsuccessfully attempted to defend its right to Patent C. Legal fees of P15,000 was incurred in this action. The asset was immediately derecognized in the accounts. The company's policy is to take full year amortization in the year of acquisition and no amortization in the year of derecognition using straight-line method. How much is the amortization of patent for the year 2021?

At December 31, 2020, Green company had three existing patents shown below: Date Acquired February 14, 2016 January 3, 2019 July 1, 2019 Useful life 8 years 10 years 5 years Cost Patent A Patent B Patent C P 150,000 210,250 72,000 During 2021, the company had the following transactions and assessments: • Due to the emerging competition relating to the product being manufactured in Patent A, it is expected that the right will be useful only in 2021 and 2022. Patent B is believe to be uniquely useful as long as the company retains the right to use it. On June 1, 2021, the company unsuccessfully attempted to defend its right to Patent C. Legal fees of P15,000 was incurred in this action. The asset was immediately derecognized in the accounts. The company's policy is to take full year amortization in the year of acquisition and no amortization in the year of derecognition using straight-line method. How much is the amortization of patent for the year 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How much is the amortization expense for the 2020 income statement assuming the defense was unsuccessful?
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How to get the answer which is 78,350?
9
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